Buying a home in a national park will cost an extra £116,500

Buying a home in a national park will cost an extra £116,500

  • New Forest is the most expensive national park (£581,448) and Snowdonia is the most affordable (£180,126)
  • The average house price in a national park is 11.7 times higher than local average gross annual earnings.

Homes in national parks attract a premium of £116,501, according to new research from Lloyds Bank.

House prices in the twelve national parks surveyed* are, on average, £116,501 above the average for their surrounding county – a house price premium of 46%.

The majority (11 of 12) of national parks have higher house prices than the average for their county**, with four – the New Forest, the South Downs, the Peak District and the Lake District – attracting a premium in excess of £150,000.

The average house price in a national park of £368,804 is 11.7 times higher than local average gross annual earnings. The comparable ratio for England and Wales as a whole is 8.0.

Andrew Mason, mortgage products director, Lloyds Bank comments:

“Buying a home in one of the most beautiful spots in the country usually comes with a substantial price tag. New development is also very limited in these areas which can also be a contributing factor.

“With the difference between local earnings and property prices being so large, it can make it very challenging for those living and working in national parks to buy their own home.”

House prices in national parks up by over £51,000 since 2007, £20,000 lower than the rest of England and Wales

The average house price in national parks across England and Wales has increased by £51,463 (16%) over the past ten years, from £317,341 in 2007 to £368,804 in 2017. The biggest percentage increases were in South Downs (41%) and The Broads (23%).

However, the £51,463 increase is £19,998 lower when compared to the average house price rise since 2007 across the whole of England and Wales.

The Lake District commands the highest price premium

Properties in the UK’s most visited national park command the largest premium with average prices more than double (105% or £186,351) those in the surrounding area.

New Forest (86% or £268,856) and the Peak District (84% or £151,969) have the second and third highest premiums.

Snowdonia is the only national park where property prices are below the average for the surrounding area (-3% or -£4,936). With an average house price of £180,126, which is 6.8 times local average annual earnings, Snowdonia is the most affordable national park in the survey.

New Forest is the least affordable national park

The average house price in New Forest is £581,448, 15.2 times local gross average annual earnings. South Downs is the second least affordable with an average house price to earnings ratio of 14.9, followed by theLake District (11.5).

Table 1: National Parks House Prices – Premium to County

National Park Average House Price  2017* (£) Average House Price in County 2017*** (£) Premium to County  % Premium to County  £
Lake District National Park 364,193 177,843 105% 186,351
New Forest National Park*** 581,448 312,592 86% 268,856
Peak District National Park*** 332,706 180,737 84% 151,969
South Downs National Park 536,208 326,832 64% 209,377
Pembrokeshire Coast National Park 254,330 168,368 51% 85,962
Dartmoor National Park 309,154 243,871 27% 65,283
Yorkshire Dales National Park 277,557 219,247 27% 58,309
The Broads Authority 311,314 247,657 26% 63,657
Exmoor National Park 304,627 243,542 25% 61,085
North York Moors National Park 298,936 245,366 22% 53,570
Brecon Beacons National Park 222,631 194,355 15% 28,276
Snowdonia National Park*** 180,126 185,062 -3% -4,936
National Parks Average** 368,804 252,303 46% 116,501

Source: Lloyds Bank, Land Registry

Northumberland National Park excluded from the analysis due to insufficient number of sales

*January to June

** Weighted average by transactions.

*** Where more than one county is involved, a weighted average of relevant counties is used.

Table 2: Ranked by highest % house price increases, 2007- 2017

National Park Average House Price  2007* (£) Average House Price  2017* (£) 10 year % change 10 year £ change
South Downs National Park 379,656 536,208 41% 156,552
The Broads Authority 254,064 311,314 23% 57,251
Lake District National Park 313,470 364,193 16% 50,723
New Forest National Park 502,042 581,448 16% 79,407
Peak District National Park 287,365 332,706 16% 45,340
North York Moors National Park 258,950 298,936 15% 39,986
Brecon Beacons National Park 204,925 222,631 9% 17,706
Dartmoor National Park 291,246 309,154 6% 17,908
Exmoor National Park 290,002 304,627 5% 14,625
Pembrokeshire Coast National Park 245,115 254,330 4% 9,215
Snowdonia National Park 180,438 180,126 0% -311
Yorkshire Dales National Park 290,667 277,557 -5% -13,110
National Parks Average** 317,341 368,804 16% 51,463

Source: Lloyds Bank, Land Registry

Northumberland National Park excluded from the analysis due to insufficient number of sales

*January to June

** Weighted average by transactions.

Table 3: Ranked by home affordability, 2017

National Park Price to Earnings ratio, 2017*
Snowdonia National Park 6.8
Brecon Beacons National Park 8.3
Yorkshire Dales National Park 8.6
Pembrokeshire Coast National Park 9.0
North York Moors National Park 9.2
The Broads Authority 9.6
Exmoor National Park 9.8
Dartmoor National Park 10.2
Peak District National Park 10.2
Lake District National Park 11.5
South Downs National Park 14.9
New Forest National Park 15.2
National Parks Average 11.7

Source: Lloyds Bank, Land Registry, ONS

* Weighted average by transactions

 

 

Kindly shared by Lloyds Banking Group